Bridgestone Group to Expand Global Production Capacity

Bridgestone will cease production of some commodity-grade tyres in Japan and convert production capacity there to large sizes and high-performance models. The company will invest a total of approximately 40 million dollars in increasing production capacity for high-value-added tyres at its Kurume, Tosu, Hofu, Hikone, Tokyo and Nasu plants. Those plants’ aggregate production capacity for the higher-value tyres will increase by 5,000 tyres per day by the end of 2003.

In Asia, Bridgestone subsidiaries in Thailand and Indonesia will increase their production capacity for the commodity-grade tyres to be phased out in Japan. Thai Bridgestone Co Ltd will invest approximately 80 million dollars to increase the production capacity of its Nong Khae Plant by 10,000 tyres a day by the end of 2004. That will give the plant a daily production capacity of about 28,000 tyres.

PT Bridgestone Tire Indonesia will invest approximately 8 million dollars to increase the production capacity of its Karawang Plant by 3,000 tyres a day by the end of 2003. Giving a daily production capacity of about 18,000 tyres. Bridgestone’s Chinese subsidiary Bridgestone (Tianjin) Tire Co Ltd also will expand its production capacity through an investment of about 8 million dollars to increase its production capacity by 3,000 tyres a day by the end of 2003.

It then will have a production capacity of 14,000 tyres a day.Bridgestone/Firestone Poland Limited Liability Company will invest around 60 million dollars to increase its Poznan Plant’s production capacity for large and high-performance tyres by 5,000 units daily by 2004 year-end bringing production there to 15,000 units daily. In Latin America, Bridgestone Group companies will expand their production capacity for commodity-grade passenger car tyres, mainly for export to North America.

Bridgestone/Firestone de Costa Rica SA will invest approximately 40 million dollars to increase the production capacity of its San Jose Plant 9,000 tyres daily by the end of 2004. Increasing daily capacity to 12,000. Bridgestone/Firestone de Mexico SA de CV will invest a further 8 million dollars to increase the production capacity of its Cuernavaca Plant by 1,000 units daily bringing production there to 14,000 per day.

These increases and shifts in production capacity are expected to make the Bridgestone Group more globally responsive to changes in demand. The geographical optimisation that they advance will make the group more cost-competitive overall..